Protect Your Property And Assets
‘What Should I Expect To Lose In Bankruptcy?’
That’s a question we hear every day at McBride Law Firm.
The truth is, most people lose very little to liquidation in Chapter 7, for the simple reason that people who are broke don’t have much to liquidate. Those assets that do have value are often exempted from liquidation — assets such as your car, home, tools and furnishings.
And in Chapter 13, there is no liquidation-so you usually lose nothing that you can afford to keep.
So Where Are The Losses?
You are already losing assets, without even declaring bankruptcy. You are probably familiar with one or more of these losses:
- The repo man driving off with your car, truck or motorcycle
- Creditors seizing a portion of your paycheck or bank accounts
- Your mortgage banker foreclosing on your home
- Credit card companies jacking up your interest rates
- Creditors harassing you at all hours, even threatening to have you arrested
File for bankruptcy today — before these assets are taken from you.
Spending Down Your Retirement Savings
A common mistake people in debt make is spending down their IRAs or 401(k)s to pay bills. You should consider filing for bankruptcy before you sign away your savings. Under Chapter 7 and Chapter 13, your retirement accounts are exempt. There’s no need to spend these savings.
Keeping Your Secured Assets Despite Liquidation
Sometimes, following filing for bankruptcy, a creditor is entitled to take back property that you borrowed money for. When this happens, you need a reaffirmation agreement with that creditor, stating that you still intend to pay for the asset. Creditors may reduce interest rates or stretch out payments to prompt this kind of agreement.
The power of bankruptcy begins with the automatic stay, which clamps a lid on all creditor actions. For more information, talk to Tom McBride at 318-445-8066. Let our attorneys show you how to protect your property.